January 17, 2009
School board approves preliminary borrowing plan
Vista Unified school trustees approved a plan this week that could allow the district to borrow $5 million for work needed to open its new magnet high school, though the board stopped short of authorizing the borrowing.
At a meeting Thursday night, the board asked district officials to come back with more specific details of the borrowing plan, which calls for the district to issue certificates of participation, which are very similar to bonds.
The money would pay to install off-site utilities and complete road work that was supposed to be done by an adjacent property owner, Cadence Homes. Under the new plan, Cadence would be required to repay the district. The developer doesn't have the money now to do the work, district officials have said.
The district needs water and electricity installed in order to open the campus, called Mission Vista High School, in August as planned. Thursday's vote won't allow district officials to borrow money, but will let them move forward with their plan and spend about $150,000 to buy engineering plans from Cadence.
"We're not issuing certificates of participation tonight," board Vice President Steve Lilly said. "We're opening some doors." Lilly said he didn't want the district to borrow money until it's clear that they would get it back. District officials are working to put a lien on the nearby Cadence Homes property as security.
Trustee Jim Gibson voted against borrowing the money. Gibson has long been a critic of the district's plan to build the campus on 66-acres near the intersection of Highway 76 and Melrose Drive in eastern Oceanside.
"We are in a (budget) situation right now that is extremely dire, and we shouldn't be discussing spending additional money at all," he said at Thursday's meeting.
Vista Unified includes most of Vista, a large portion of eastern Oceanside and some surrounding unincorporated areas. Gibson said he thinks the district should consider going to court to make the developer pay for the work, rather than risk tying up its money.
"We're going to be straddled with this debt at the wrong time," he said. "Let them be straddled with the responsibility." If the board decides to borrow the money, it would take 15 years to pay off the debt using redevelopment funds, school officials have said. Cadence Homes would be responsible to repay the entire amount, including interest, said Donna Caperton, the district's chief business officer.
Trustee Elizabeth Jaka said she thought it was important to do what it takes to get the school open in August as planned. "People are concerned that we're not going to open that school this fall," she said. "It's making it difficult for them to encourage enrollment." The campus is expected to cost about $100 million, which will come mostly from state funds and money from a $140 million school construction bond measure that voters passed in 2001.
Contact staff writer Stacy Brandt at (760) 901-4009 or sbrandt@nctimes.com.
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